Apr 21, 2025 (The Namibian/All Africa Global Media via COMTEX) --
Despite its vast resource wealth - diamonds, uranium, lithium, cobalt, graphite and copper - Namibia is still locked into South Africa's economic orbit.
The Southern African Customs Union (Sacu) dictates its import tariffs, the Common Monetary Area (CMA) ties its currency to the rand, and more than 80% of its imports come from South Africa.
Sacu benefits South Africa far more than Namibia. Pretoria sets trade policy, meaning Namibia can't adjust tariffs to nurture local industries or attract alternative partners.
The CMA further erodes sovereignty as Namibia's dollar is pegged to the South African rand.
When the rand weakens or South African interest rates rise, Namibians experience inflation and higher borrowing costs.
WARNING SHOTS
Recent tensions between South Africa and the United States (US) over Pretoria's perceived alignment with Russia present a clear danger to Namibia.
If the US imposes sanctions or suspends trade benefits, the effects would ripple through the region.
Namibia, being economically entangled with South Africa, would likely suffer collateral damage.
This moment should serve as a wake-up call: Namibia cannot afford to have its economic destiny tied to another country's political missteps.
Namibia's economic dependence is unsustainable.
Sacu's rigid structure limits tariff flexibility. Namibia can't devalue its currency to boost exports or respond independently to economic shocks.
Cheaper South African imports flood the market, undercutting local producers and stalling industrial growth.
Meanwhile, South African companies dominate Namibia's banking, retail, and manufacturing sectors, repatriating profits that could build Namibia's economy.
The underutilised port of Walvis Bay is another casualty.
Instead of becoming a regional trade hub, it plays second fiddle to South African ports like Durban and Cape Town.
A NEW VISION
Namibia must pivot away from South Africa's shadow and embrace broader African integration.
The African Continental Free Trade Area (AfCFTA) offers a path to diversify markets, stimulate industrialization, and reduce dependency.
For example, Namibia's agricultural imports - currently dominated by South Africa - can be replaced through trade with East African and Southern African Development Community partners.
Kenya, a leader in trade and digital tools, can supply technology and essential commodities.
Ethiopia's industrial parks can provide affordable textiles and machinery, while Uganda and Tanzania can meet agricultural needs.
Closer to home, Namibia should deepen trade with Angola, Zambia, Zimbabwe, and Botswana.
These countries offer alternative sources for food, energy and manufactured goods - without the political baggage of South African hegemony.
TRANSFORMATIVE POTENTIAL
It's time for Namibia to rethink its monetary policy.
Pegging the Namibia dollar to its diamond or mineral reserves - or a diversified basket of commodities - would offer greater control over inflation, interest rates, and exchange rate policy.
This approach would allow Namibia to respond to its own economic realities rather than importing South Africa's volatility.
Strategically located, Walvis Bay could serve as a trade gateway for landlocked African nations.
With the right infrastructure and policy reforms, Namibia could transform itself into a logistics and export hub connecting Africa, Europe and the Americas.
But this vision demands reducing reliance on South African-controlled supply chains and prioritising local industries.
Namibia must leverage its resource wealth for national development.
Rather than exporting raw minerals, the country should invest in refining, battery production and technology manufacturing.
These sectors can create jobs, boost revenue and reduce dependence on South Africa.
TIME TO ACT
Breaking free from South Africa's economic grip won't be easy.
It requires courageous leadership, strategic partnerships and patient reform.
There will be friction - currency volatility, trade shifts and diplomatic pushback.
Namibia's political independence was hard-won.
Economic sovereignty must be the next frontier.
The leader who steers Namibia toward this path will be remembered as the architect of the country's second liberation. The time to act is now.
- Elvis Mboya is the president of the Namibia-Kenya Chamber of Commerce and a former journalist in Namibia and Kenya.
COMTEX_464767320/2029/2025-04-21T09:03:58
by Elvis Mboya
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